NJ Foster Parent Stipend and Board Rates: What You Actually Get Paid

There is a question almost every New Jersey foster care applicant has and almost no one asks out loud at orientation: how much does this actually pay? The board payment is not income — CP&P is explicit that the stipend is intended to cover the child's specific needs, not to compensate the household. But understanding what you will receive, and what it covers, is part of making an honest decision about whether you can sustain a foster placement.

Here is what the rates look like and how the full financial picture works.

Monthly Board Rates by Age and Level

New Jersey's board payments are structured on a four-level acuity scale. Level A is the base rate for a typical child. Level D is for children with the highest support needs. Levels B and C fall in between based on CP&P's assessment of the child's individual needs.

These rates were established under the Embrella (formerly NJ Foster and Adoptive Family Services) board rate schedule and reflect the levels that were in effect through the 2023-2024 period. New Jersey's 2025-2026 state budget includes significant increases in family support funding, so current rates may differ — confirm current figures directly with your RFSW or Embrella's published board rate FAQ.

What the Board Payment Is Supposed to Cover

The board rate is designed to cover the child's food, shelter, clothing, and day-to-day care costs. It is not a salary. The regulatory standard under N.J.A.C. 3A:51 requires that foster households be "economically independent of the board subsidy" — meaning CP&P will not license a household that depends on the board payment to meet its own basic expenses.

In practice, the base Level A rates — $763 to $907 per month depending on age — are intended to cover a child's direct costs. Households fostering a child at Level A may still absorb some portion of the costs from their own income.

Children placed at Level C or D have significantly higher support needs and their rates reflect that.

Initial Clothing Allowance

When a child enters a new placement, CP&P issues a one-time initial clothing allowance to ensure the child has appropriate clothing regardless of what they arrived with. The current rates are:

• Ages 0–12: $250
• Ages 13–15: $275
• Ages 16–21: $300

This payment is issued directly to the resource family and is separate from the ongoing monthly board rate. It is intended for initial clothing needs at the time of placement — not for ongoing clothing expenses, which are expected to be covered within the monthly board rate.

Respite Care Reimbursement

Respite care allows resource families to take short breaks from caregiving while ensuring the child remains in a safe, licensed environment. New Jersey reimburses resource families for respite costs.

Current reimbursement rates are approximately:

• Self-hired respite workers: up to $28.24 per hour
• Agency-hired respite workers: up to $42.76 per hour

Respite is not unlimited. Families must coordinate respite arrangements through their RFSW and stay within CP&P's approved limits. The purpose is genuine caregiver recovery, not routine childcare.

Medical Coverage: NJ FamilyCare

Children in New Jersey foster care are covered by NJ FamilyCare, the state's Medicaid program. Confirm the child's coverage and how to obtain the Medicaid ID with your RFSW. This covers:

• Medical and physician visits
• Dental care
• Mental health and behavioral health services
• Prescriptions
• Vision care

Ask your RFSW how to obtain or confirm the child's Medicaid ID upon placement.

A 2024 New Jersey law (A4543) further protects children by prohibiting the state from using a foster child's federal benefits — such as SSI disability payments — to offset the cost of their care. Any federal benefits to which a child is entitled must now be conserved for the child's own future.

What Is Not Covered

The board rate and associated supports do not cover everything. Resource families are typically expected to provide:

• Transportation to school, medical appointments, and visits with birth family
• Activities, hobbies, and extracurriculars beyond basic care (though NJ's "Normalcy Law" encourages age-appropriate activities without caseworker approval for each)
• Childcare costs when both caregivers are employed (the board rate does not include a childcare component for most placements)

How Payments Are Actually Made

Board payments are monthly; confirm the payment method and timing with your RFSW.

Plan for immediate out-of-pocket costs — food, clothing, personal items, and school supplies — before your first board payment. Ask CP&P about payment timing and what assistance applies to your placement.

The "Income" Question

Foster care board payments are intended to offset the costs of care rather than serve as household income. Tax treatment can depend on the payment and the household's circumstances, so confirm current IRS guidance or consult a tax professional before filing.

If you adopt a child from foster care in New Jersey, ask CP&P about the tax treatment of any adoption assistance agreement and confirm it under current IRS guidance.

Is the Money a Reason to Foster?

This is the question CP&P's financial disclosure requirement is designed to answer. The honest answer is that New Jersey's board rates are intended to cover a child's direct needs, not serve as a source of household income. Families who expect fostering to meaningfully supplement household finances will be disappointed — and that expectation is a red flag that the licensing process is designed to surface.

The financial supports that do matter: NJ FamilyCare provides medical, dental, and mental-health support, the initial clothing allowance helps with costs at placement, and respite reimbursement can make sustained fostering more viable for families who use it.

Understanding the full picture — what you receive, what it covers, and what gap remains — is part of the honest preparation that the New Jersey Foster Care Licensing Guide at /us/new-jersey/foster-care/ walks through in detail.

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